INDIANAPOLIS, Oct. 11, 2019 /PRNewswire/ -- Calumet Specialty
Products Partners, L.P. (NASDAQ: CLMT) (the "Company",
"Partnership" or "Calumet"), a leading independent producer of
specialty hydrocarbon and fuels products, today announced that it
has successfully completed a $550
million offering of new senior unsecured notes maturing in
2025 (the "Offering").
Transaction Highlights:
- Completes effort to address original $900 million of notes maturing in 2021, with
maturity of new notes at 5.5 years
- Net proceeds of the Offering plus borrowings under revolver and
cash on hand to be used to redeem all existing senior notes due
2021
- Estimated annual interest expense of approximately $138 million based on current capital structure
is significantly lower than the approximately $156 million of interest expense reported in
2018
- Issuing the new notes in the unsecured market provides
optionality to address 2022 and 2023 maturities with free cash
flow, asset sales, or refinancing, and preserves current credit
ratings, enabling access to improved trade credit
"We are very pleased to complete the refinancing of our
near-term debt," stated Tim Go, Chief Executive Officer of Calumet.
"The refinancing of our 2021 notes successfully addresses the
remaining $761 million of the
original $900 million of 2021 notes
and reflects the continued support of our investors in our ongoing
transformation efforts."
West Griffin, Chief Financial Officer of Calumet continued,
"Completing the refinancing of Calumet's largest and most
near-dated debt obligation marks meaningful progress in our efforts
to improve our balance sheet. Not only are the economics of the
transaction nearly breakeven to the Company's cash flows, but by
successfully issuing in the unsecured market, Calumet will have
more options to address future debt maturities. Additionally, by
staying in the unsecured market, the Company has protected its
improved credit ratings and preserved important strategic gains
such as improved access to trade credit. Now that the transaction
is complete, Calumet can look towards the next step to enhancing
its balance sheet and capital structure, and we look forward to
continuing the positive momentum of our transformation."
Following this closing of the new 2025 notes, and with all other
conditions having been met, the previously-announced expansion of
Calumet's borrowing base under its asset-based revolving loan
facility (the "ABL" or the "facility") went into effect.
Accordingly, the Company borrowed $99.5
million under the facility, the proceeds of which, together
with proceeds from the offering of the new notes and cash on hand,
will be used to retire the 2021 notes. This LIBOR-based revolving
loan accrues interest at LIBOR plus 150 basis points. Closing of
the redemption of the 2021 notes is scheduled to occur on
October 21, 2019.
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, any of these securities, nor shall
there be any sale of these securities in any jurisdiction in which
such offer, solicitation, or sale would be unlawful.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) is a
master limited partnership and a leading independent producer of
high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and
other feedstocks into customized lubricating oils, solvents and
waxes used in consumer, industrial and automotive products;
produces fuel products including gasoline, diesel and jet fuel.
Calumet is based in Indianapolis,
Indiana, and operates eleven manufacturing facilities
located in northwest Louisiana,
northern Montana, western
Pennsylvania, Texas, New
Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements and information in this press release may
constitute "forward-looking statements." The statements discussed
in this press release that are not purely historical data are
forward-looking statements, including, but not limited to, the
statements regarding our expectations regarding our anticipated
redemption of our 2021 notes and refinancing of our 2022 notes and
2023 notes as well as statements regarding our business outlook and
cash flows. These forward-looking statements are based on our
current expectations and beliefs concerning future developments and
their potential effect on us. While management believes that these
forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting us will be
those that we anticipate. Our forward-looking statements involve
significant risks and uncertainties (some of which are beyond our
control) and assumptions that could cause our actual results to
differ materially from our historical experience and our present
expectations. For additional information regarding known material
risks, uncertainties and other factors that can affect future
results, please see our filings with the Securities and Exchange
Commission, including our latest Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. We undertake no obligation to
publicly update or revise any forward-looking statements after the
date they are made, whether as a result of new information, future
events or otherwise.
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SOURCE Calumet Specialty Products Partners, L.P.